Economic Principles of Public Policy
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This course will introduce students to key economic concepts such as scarcity, efficiency, monopolies, and cost-benefit. Students will practice applying these principles to the range of decisions that public sector executives have to make in order to understand the trade-offs inherent in any public policy or program.
Economics for Decision Making
Economics is the science of resource planning, investment allocation and optimisation, and budget efficiency which underlies all business, government and individual decisions, including pricing, product development, negotiations, macroeconomic risk management, and understanding the general operating environment.
This seminar provides an introduction to economic analysis with a particular focus on concepts and applications relevant to business investment decisions and government financial behaviour. It addresses how to read and interpret economic indicators like GDP, CPI, PMI, Money Supply, Interest rates, MPR, CRR, Repos, exchange rates, Futures, Forwards, Derivatives etc. It also introduces a framework for understanding and analysing the broader economic and public policy environment in which a business competes. Participants are equipped with knowledge of fundamental concepts and tools of economic analysis in a richly practical, simple and actively engaging context.
It is expected that participants are able to use published economic statistics and forecasts to assess economic conditions and outlook; become better equipped to relate economic developments to business, social, and political trends; and understand how to manage the risks imposed by the dynamics of GDP growth, inflation, exchange rate, interest rate and government fiscal policies.
- The price-setting mechanism of the market – demand and supply analysis for price and output determination
- Elasticity concept, the welfare of consumers, producers and the efficiency of markets
- Economics of the public sector – externalities, public goods and common resources, and design of the tax system
- Firm behaviour and organisation of industry – costs of production, competitive markets, monopoly, oligopoly and monopolistic competition
- The system of economic production – national income accounting and measuring the cost of living, factor productivity etc.
- The monetary system and monetary policy mechanism
- The fiscal system and fiscal policy mechanism
- The techniques of budget analysis
- International trade and finance, terms of trade, the absolute and comparative advantage
- The foreign exchange market and determination of exchange rate
- Balance of payments analysis
- Framework for managing macroeconomic risks or growth, inflation, interest rate and exchange rate
- The derivative market and terminologies
- The capital market
- Glossary of key economic statistics
- 2018 economic forecast
Key Learning Outcomes
- Understand the language when economists describe the economy.
- Apply demand and supply analysis to explain how prices and output are determined in different markets.
- Know where to find or how to compute and use economic indicators like GDP, exchange rate, unemployment rate, inflation rate, interest rate, CPI, Money Supply, MPR, CRR, Repos, and NCO, Labour statistics etc.
- Understand the techniques for managing macroeconomic risks imposed by changing exchange rate, money supply, inflation, interest rate, fiscal policies and international ratings and understand fundamental macroeconomic relationships such as between inflation, interest rate and exchange rate.
- Understand the monetary system, the role of the Central Bank in monetary policy formulation and the key instruments of macroeconomic policy and describe their role in the economy.
- Understand the fiscal policy mechanism; how to carry out budgetary analysis, the meaning of the budget cycle, budget deficit, budget surplus and government's tax and revenue behaviour.
Who should attend
Professionals from all sectors (public, private, and from NGOs)